TSX hits one-month high after US jobs market data
TSX up 1.2%
US weekly jobless claims rise, labour market slows
Open Text up after announcing job cuts
Updated at 10:26 a.m. ET
By Nikhil Sharma
July 3 (Reuters) -Canada's main stock index jumped to its monthly high on Wednesday as soft U.S. jobs market data pushed bond yields down, while investors awaited the minutes from the Federal Reserve's last policy meeting for its monetary policy outlook.
At 10:26 a.m. ET (14:26 GMT), the S&P/TSX composite index .GSPTSE was up 272.28 points, or 1.24%, at 22,226.
Yield on the U.S. 10-year benchmark Treasury note US10YT=RR fell 2.4 basis points after the jobs market data. Yield on its Canadian counterpart was last down at 3.556%.
U.S. weekly jobless claims increased last week, indicating easing labour market conditions, while private payrolls increased a bit less than expected in June, consistent with slowing job market momentum.
Separately, services U.S. sector activity slumped to a four-year low in June amid a sharp drop in orders, pointing to loss of momentum by the end of second quarter.
"It'll also be interesting to see what happens with non farm payrolls on Friday, but today you're kind of getting a mixed bag of economic numbers", said Colin Cieszynski, chief market strategist at SIA Wealth Management.
The U.S. stock market will close early on Wednesday and remain shut on Thursday on account of the country's Independence Day, reducing trading activity throughout the week.
On the Toronto Stock Exchange, materials shares .GSPTTMT led the sectoral gains with a 3.2% rise, while rate-sensitive utility stocks .GSPTTUT, climbed 1.3%.
The energy sector .SPTTEN was up 1% as oil prices steadied due to a bigger-than-expected drawdown in U.S. crude stockpiles and economic headwinds in China as well as euro zone. O/R
Among individual stocks, Open Text Corp OTEX.TO shares surged 1.1% after the company announced a business optimisation plan expected to result in the reduction of nearly 1,200 positions.
Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay Kishore and Shreya Biswas
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